Cross-border factoring

Concluding a transaction by a network of factors across borders. The exporter's factor can contact correspondent factors in other countries to handle the collection of accounts receivable.

Cross-Border Factoring

Concluding an international transaction by using a more than factor; that is, an institution that buys others institutions' accounts receivable. In this situation, an exporter sells its accounts receivable to a factor, which then contacts other factoring institutions in order to collect what was owed to the exporter. This helps the exporting business because it may divest itself of credit risk (and perhaps currency risk as well).

References in periodicals archive

With more than 400 member companies worldwide, FCI offers a unique network for cooperation in cross-border factoring.

Noor Bank becomes member of FCI

Cross-border factoring is available through a small set of banks and factoring houses in the U.S.

Confirmed, irrevocable letters of credit are not always the answer

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